Japan will create an international payment infrastructure for cryptocurrency transactions which will be similar to SWIFT and maybe even better. The project is a part of the massive push forward towards the crypto adoption and in the latest cryptocurrency news today we take a closer look at the project.
While there are no many details about this project, there are some indications that the Financial Action Task Force is collaborating with the Japanese authorities on the project. The idea came into effect because of Facebook’s entry into the crypto scene with the Libra crypto project which could make a huge mess on a global scale. According to Reuters, an anonymous person stated that the Japanese authorities are trying to create a cross-border network for crypto transactions just as the SWIFT which is used by banks. Japan is one of the places in the world that it appears to be in front of everyone in technology development since the reports also show that the FATF is monitoring the development and plan to get other major economies involved.
The FATF approved the plans for the new international crypto infrastructure network after the finance ministry proposed the idea. The source also revealed that the project could easily be up and running in the next couple of years. Japan is not the only country looking to develop blockchain-based infrastructure and Iran is also developing a new banking system that could run on the blockchain.
The central bank of the country is working with a local tech startup on a project named Borna which will be built using the Hyperledger Fabric implementation created by the Linux Foundation. Japan will create a new system in order to combat money laundering and will use the anti-money laundering and know your customer protocols. The Financial Services Agency which is the regulatory watchdog of the country has taken many steps to sanitize the crypto scene and Japan quickly became the first nation in 2017 to create regulations for crypto exchanges.
Some inside sources say that the FATF and FSA are working very closely on the project because they are concentrated to gain the approval of the intergovernmental FATF with regard to the AML procedure. The FATF is also aiming to regularize the AML laws in order to govern cryptocurrencies globally as noted in the coming altcoin news reports.
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